So has the market given up on Ben Bernanke’s ability to fight deflation via easy money?
The TIPS spread might suggest so:
The market has stood on TIPS toes
As Business Insider notes:
This helps explain the psychology behind Ben Bernanke’s latest move. He has signaled that he will keep easy-money policy tools on the table in order to fight potential deflation, in an attempt to reverse the decline in inflation expectations.
(Source: Business Insider)
